So far, Bengaluru, India’s tech hub has traditionally been the destination for IT professionals, an abode to thousands of workers.
IT Job Crisis In Bengaluru
But now, it will change considering current trends, the city is likely to experience one of the most severe jobs crises in its history.
It appears to be fueled by large-scale layoffs in the IT industry and the surging growth of artificial intelligence (AI) and automation.
We need to understand that this crisis will not only affect the tech professionals but also will create a ripple effect on the other sectors such as the housing market, property investments, and local enterprises.
That’s why this imminent change is a dark headwind for Bengaluru’s economy.
In coming times, Bengaluru is likely to see huge scale retrenchment in the IT industry, primarily of low-paying staff.
Here mentioned low-paying staff are often those with the most marginal homes.
These are the people who are first in line for layoffs when employers come under money stress, save costs, or switch to robots.
The low-tier software programmers are most likely to lose their jobs to AI equipment as they can programme and debug programmes with more proficiency and less money in a bid to trim down expenses.
As we know that a big part of them lives as a paying guest in Bangalore.
So these layoffs will have an instant impact on the paying guest (PG) market and other establishments near Bengaluru.
When it comes to the PG facilities, they are usually the cheapest option available for low-paid IT workers.
The demand for cheap housing will drop, when these workers will lose their jobs further causing financial hardship for landlords and PG operators.
The situation is likely to worsen for the real estate investors, especially those near the Outer Ring Road (ORR).
Considering this area has a number of tech parks and offices.
It’s tough for them as these investors have invested crores of rupees in properties looking for regular returns from the tech-led economy.
However, the looming wave of retrenchments, most of them will not get the expected returns they were expecting.
Not So Obvious
Most of the people downplay the quick pace of AI and its potential to displace low-level tech work.
That is one of the reasons this impending crisis is not so obvious.
While collaborating with other software developers, it is increasingly apparent that AI and automation are transforming the tech sector.
It’s alarming to IT professionals as several activities that previously needed human touch such as coding, debugging, and testing, can now be performed by AI tools more accurately and at a lower cost.
